as far as I know, what happens, is it returns an interpolated position between two points, which you assign to the position variable, effectively moving the object. that's it, there's no physics check with the environment, in fact no checks at all as far as I'm concerned besides the method making sure it receives and returns a Vector3 value. there's nothing fancier at all beyond some quick interpolation.
if that sounds like what you want or need, there's no reason not to use it.